ETF Outflows: A Concern?
The crypto market was surprised by significant outflows from Cathie Wood’s ARK 21Shares spot Bitcoin ETF (ARKB) on Tuesday. This marked the first time a “Newborn Nine” ETF had surpassed the outflows of Grayscale’s Bitcoin Trust (GBTC).
Analysts are debating whether these outflows are a bearish signal for Bitcoin’s price or simply part of the market’s ups and downs.
Analyst Perspectives
Bloomberg’s ETF analyst, Eric Balchunas, downplayed the outflows, saying that even reputable ETFs experience them as part of their cycle. He also highlighted the significant role ETFs have played in supporting Bitcoin’s price.
Crypto expert Scott Melker suggested that the ARKB outflows could be due to a large investor reallocating assets to a different ETF.
ETF Transparency
Balchunas emphasized the anonymity of ETF trading, stating that it’s impossible to know who is buying or selling. This privacy aspect differentiates ETFs from other investment vehicles.
Positive ETF Inflows
Despite the ARKB outflows, the ETF market showed resilience with positive flows of $113.5 million on Wednesday. Fidelity led the inflows, followed by Blackrock and Bitwise.
Analyst Commentary
WhalePanda commented that the big outflows on GBTC are over and that the market is consolidating. He noted that Bitcoin needs to buy up the daily mined supply at a rate of $60 million per day, which could be achievable at current prices.
Current Price
At the time of writing, Bitcoin was trading at $66,217.
